v3.26.1
INVESTMENTS AND FAIR VALUE MEASUREMENTS
 12 Months Ended
Jan. 31, 2026
Fair Value Disclosures [Abstract]  
INVESTMENTS AND FAIR VALUE MEASUREMENTS INVESTMENTS AND FAIR VALUE MEASUREMENTS
The following is a summary of the Company’s cash equivalents and investments on the consolidated balance sheets (in thousands):
As of January 31, 2026
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimate Fair Value
Cash equivalents:
Money market funds$129,893 $— $— $129,893 
Commercial paper40,758 — — 40,758 
Total cash equivalents170,651 — — 170,651 
Short-term investments:
U.S. government and agency securities103,458 38 — 103,496 
Commercial paper24,087 — — 24,087 
Corporate bonds29,387 26 (2)29,411 
Total short-term investments156,932 64 (2)156,994 
Total cash equivalents and investments$327,583 $64 $(2)$327,645 
The Company had no balances in investments as of January 31, 2025. The Company’s investments consist of available-for-sale debt securities. The Company considers debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities as short-term investments on the consolidated balance sheets. The Company included $0.8 million of interest receivable within prepaid expenses and other current assets on the consolidated balance sheets as of January 31, 2026.
Gross unrealized losses on the Company’s available-for-sale debt securities were not material as of January 31, 2026. For investments with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis.
As of January 31, 2026, there was no allowance for credit losses related to our available-for-sale debt securities. As of January 31, 2026, the weighted-average remaining maturity of our available-for-sale debt securities was less than one year, and the contractual maturities of our available-for-sale debt securities did not exceed 24 months.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
As of January 31, 2026
Level 1Level 2Level 3Total
Financial Assets
Cash equivalents:
Money market funds
$129,893 $— $— $129,893 
Commercial paper— 40,758 — 40,758 
Short-term investments:
U.S. government and agency securities— 103,496 — 103,496 
Commercial paper— 24,087 — 24,087 
Corporate bonds— 29,411 — 29,411 
Total financial assets$129,893 $197,752 $— $327,645 
As of January 31, 2025
Level 1Level 2Level 3Total
Financial Liabilities
Redeemable convertible preferred stock warrant liability$— $— $427 $427 
Embedded derivative liability
— — 59,820 59,820 
Total financial liabilities$— $— $60,247 $60,247 
As of January 31, 2026, no financial liabilities were measured at fair value on a recurring basis. As of January 31, 2025, no financial assets were measured at fair value on a recurring basis.
There were no transfers between Level 1, Level 2 or Level 3 fair value hierarchy categories of financial instruments during the years ended January 31, 2026 and 2025.
Cash Equivalents and Short-term Investments
The Company determines the fair value of its cash equivalents and short-term investments based on pricing from the Company’s service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curves, volatility factors, credit spreads, default rates, broker and dealer quotes, as well as other relevant economic measures.
Redeemable Convertible Preferred Stock Warrant Liability
In connection with a loan agreement entered into in December 2015, we issued redeemable convertible preferred stock warrants to purchase 60,757, 30,192, 34,080 and 40,160 shares of Series Seed, Series A, Series A-1 and Series B preferred stock at the stated exercise prices of $0.2469, $0.4968, $0.5853 and $1.8675 per share, respectively.
As of January 31, 2025, 40,160 Series B redeemable convertible preferred stock warrants remained outstanding and were recorded at a fair value of $0.4 million. Immediately prior to the IPO, 40,160 Series B redeemable convertible preferred stock warrants remained outstanding and were recorded at a fair value of $0.9 million. Upon the closing of the IPO on October 31, 2025, these redeemable convertible preferred stock warrants automatically converted to Class A common stock warrants and were reclassified
to equity. The Class A common stock warrants were subsequently exercised, and no Class A common stock warrants remain outstanding as of January 31, 2026.
The fair value of the redeemable convertible preferred stock warrant liability was determined using the Black-Scholes option pricing model. The following assumptions were used to calculate the fair value of the redeemable convertible preferred stock warrant liability as of immediately prior to conversion to equity upon the closing of the IPO on October 31, 2025, and as of January 31, 2025:
As of
October 31, 2025
January 31, 2025
Volatility50.0 %55.0 %
Risk-free interest rate3.7 %4.1 %
Expected term (in years)2.93.9
Dividend yield— %— %
Prior to the IPO, the redeemable convertible preferred stock warrant liability was recorded within other non-current liabilities on the consolidated balance sheet as of January 31, 2025. Following the IPO, the redeemable convertible preferred stock warrant liability automatically converted to equity classified Class A common stock warrants recorded within additional paid-in capital on the consolidated balance sheet as of January 31, 2026. Changes in fair value are recorded in gain (loss) on fair value adjustments on the accompanying consolidated statements of operations for the years ended January 31, 2026, 2025, and 2024.
Fair value measurements are highly sensitive to changes in these inputs; significant changes in these inputs would result in a significantly higher or lower fair value. The change in value of the redeemable convertible preferred stock warrant liability is summarized below (in thousands):
Balance as of January 31, 2024
$297 
Change in fair value
130 
Balance as of January 31, 2025
427 
Change in fair value510 
Reclassification to equity
(937)
Balance as of January 31, 2026
$— 
Embedded Derivative Liability
The embedded derivative liability is bifurcated from the convertible notes issued in June 2020. In connection with the IPO, the convertible notes automatically converted into shares of Class A common stock, and the embedded derivative liability was extinguished. Refer to Note 8 — Debt for further information regarding the convertible notes and the conversion upon IPO.
Prior to the IPO, the fair value of the embedded derivative liability was computed using a combination of the income approach, the Black-Scholes option pricing model, a probability-weighted estimate of the time to conversion, and other Level 3 inputs. Significant management assumptions and estimates were
involved in this determination. The significant unobservable inputs used in measuring the fair value of the embedded derivative liability include the following:
As of
January 31, 2025
Time to expiration (in years)
0.70 - 1.70
Time from conversion to maturity (in years)
0.65 - 1.65
Discount factor9.0 %
Volatility
57.8% - 72.6%
Risk free rate
4.1% - 4.2%
The embedded derivative liability was measured at fair value immediately prior to the conversion of the convertible notes upon the completion of the IPO. The fair value of the embedded derivative liability immediately prior to the completion of the IPO was determined by comparing the fair value of the number of shares issued upon the conversion of the convertible notes at the IPO price to the fair value of the number of shares that would have been issued had the convertible notes converted at a $5 billion valuation cap at a discount to the IPO price.
The change in value of the embedded derivative liability is summarized below (in thousands):
Balance as of January 31, 2024
$72,150 
Change in fair value(12,330)
Balance as of January 31, 2025
59,820 
Change in fair value(25,150)
Extinguishment
(34,670)
Balance as of January 31, 2026
$— 
Changes in fair value of the embedded derivative liability are recognized as a component of gain (loss) on fair value adjustments in the accompanying consolidated statements of operations. The loss on extinguishment of the embedded derivative liability was recognized within the consolidated statements of operations during the year ended January 31, 2026 as a component of the loss on debt extinguishment related to the convertible notes. Refer to Note 8 — Debt for further information regarding the convertible notes.
Simple Agreements for Future Equity (SAFEs) and Common Stock Warrants
During the year ended January 31, 2026, we entered into SAFEs with multiple investors. In connection with the IPO, the SAFEs automatically converted into shares of Class A common stock. Refer to Note 8 — Debt for further information regarding the conversion features and terms of the SAFEs.
We issued common stock warrants to investors together with the SAFEs. The number of shares issued upon exercise of the common stock warrants was determined based on a fixed percentage of the fully diluted capitalization prior to the earliest to occur of (a) a deemed liquidation event, (b) a liquidity event, and (c) the date of exercise. The SAFE warrants became exercisable for a fixed number of shares, were reclassified to equity, and were exercised for 1,216,187 shares of Class A common stock in connection with the IPO.
Prior to the IPO, the SAFEs and common stock warrants were measured at fair value on a recurring basis, with changes in fair value recognized as a component of gain (loss) on fair value adjustments in the accompanying consolidated statements of operations. The fair value of the SAFEs was computed using an income approach, and the primary significant unobservable input used in measuring the fair value of the SAFEs was the time until conversion. The fair value of the common stock warrants was computed using the probability weighted expected return method. The significant inputs used in measuring the fair
value of the common stock warrants were the number of shares that would be issued upon exercise of the warrants, the time until conversion, and the discount for lack of marketability. Immediately prior to the IPO, the fair value of the SAFEs and common stock warrants were measured at fair value using the IPO price and fully diluted capitalization.
The following table presents a summary of the changes in the fair value of the SAFEs and common stock warrants (in thousands):
SAFEs
Common stock warrants
Balance as of January 31, 2025
$— $— 
Additions in the period127,300 27,700 
Change in fair value68,975 2,706 
Reclassification to equity— (30,406)
Conversion(196,275)— 
Balance as of January 31, 2026
$— $— 
Other Financial Instruments
The fair value of other financial instruments that are not recognized at fair value on the balance sheet are presented below for disclosure purposes only (in thousands):
Fair Value HierarchyAs of January 31,
20262025
Convertible notesLevel 3$— $359,200 
Warehouse credit facilityLevel 3$122,464 $210,995 
ABL facilityLevel 3$5,563 $— 
Trade loan facilityLevel 3$— $45,000 
2022 promissory noteLevel 3$— $179,932 
Other debtLevel 3$618 $933